On May 28, 2020, the federal government released
regulations making good on its promise to lift the requirement for federally
regulated employers to make solvency special payments to their DB
pension plans. The regulations are effective as of May 27, 2020 and
are expected to be published on June 10, 2020 in the Canada
Gazette. A copy of the regulations can be viewed
here.
What the regulations do
The regulations relieve employers from the obligation to make
solvency special payments to federally regulated DB pension plans
from the effective date (May 27, 2020) to December 30, 2020. This
means that no further solvency special payments will be required to
the end of 2020. Because solvency special payments are due no later
than the 30th of the month after the month to which they relate,
April's solvency special payment (due May 30th) was
technically not required. May – November's payments
(due June – December) are similarly not required.
